Senators: Exporter-SBMA collusion in rice smuggling possible

Senators on Wednesday said foreign exporters and the Subic Bay Metropolitan Authority (SBMA) may have connived to be able to smuggle millions of pesos worth of rice into the Philippines. This after the senators finished grilling SBMA and Customs officials during a Senate hearing on Wednesday over the illegal entry of 420,000 sacks of rice from India and 90 container vans of Vietnam rice into the country through the Subic Freeport Zone. The 420,000 sacks of white Indian rice entered the port without any import entry permit while the 90 containers of rice were declared as construction materials. "Ang daming kuwestiyon na kailangang masagot nitong mga opisyal ng SBMA. Ang daming mga lumalabas dito na mga paliwanag na nagsa-suggest nga na mayroong sabwataan para dalin sa lokal na merkado, i-smuggle itong over 420,000 bags of Indian rice," Sen. Francis Pangilinan, chairman of the Senate committee on agriculture and food, told reporters. "May sabwatan mula dun sa Indian company, isang locator, ang SBMA pa ang nagpakilala at [kunyari] sinabi 'sige dalin ninyo sa Subic at papayagan namin pumasok sa port of entry at kayo ang magwe-warehouse habang maghahanap kami ng paraan na makakuha ng lisensya mula sa pamahalaan para makapasok sa merkado,' yun ang lumalabas sa hearing na ito," Sen. Ralph Recto, chair of the Senate ways and means committee, said in a separate interview. The Senate probe into the rice smuggling issue was conducted by the Senate committees on agriculture and food, ways and means, trade and commerce, and accountability of public officers and investigations. During Wednesday's hearing, senators specifically grilled SBMA and Customs officials why they allowed entry of the 420,000 sacks of rice without the necessary permits. "Mayroong kapangyarihan ang SBMA na 'wag [ito] ipasok, i-reject at 'wag ilabas, wag ibaba, bakit hindi ito ang sinunod nila?" said Pangilinan. "Ganun ba kayo sa Subic [anybody] can just bring in goods without any notice to the freeport? Sino ang nagbigay ng pahintulot dito? Sino ang pumayag na i-discharge ito?" added Senate President Juan Ponce Enrile. Bureau of Customs (BOC) commissioner Ruffy Biazon, however, said they are just a "second liner" to the SBMA in terms of regulating the Subic Bay Freeport Zone. "Sinasabi nga nila, second class citizens kami sa freeport, sometimes we are even challenged when it comes to our jurisdiction.  The freeport is definitely under the jurisdiction of the SBMA," Biazon said during the hearing. SBMA senior deputy administrator for operations Redentor Tuazon, for his part, explained that it was common practice for freeports to entertain ships that go into their jurisdiction. "It is not sound business policy for us not to allow the discharge of ships that go through Subic because we market our port also as an alternative to Manila," he said. He added that they "believed" the exporter and consignee of the shipment, Amira Foods India Limited and Metroeastern, when it said it was waiting for a permit from the National Food Authority (NFA) to distribute the rice locally. During the hearing, Metroeastern representative Cesar Bulaon said the rice shipment was meant for Indonesia but that the country rejected its entry for lack of necessary permits.   He later admitted he was contacted by SBMA senior deputy administrator for business and investment development Stefani Saño to extend help to the Amira Foods, which was in need of a consignee and a warehouse. He said he then contacted Amira, who sent its representative named Mr. Protik to transact with him.  He said he met with Protik and a supposedly well-known broker named Bong Cuevas, who promised he will be able to secure an import permit for Amira. However, SBMA and Customs officials present during the hearing denied knowing such a person (Cuevas). NFA administrator Angelito Banayo likewise said Amira could not have bidded for a permit because bidding was already over months ago. Enrile said Cuevas was a "known personality" in the previous administration who was involved in gaming operations in Fort Irene. The Senate president, however, refused to believe Bulaon's story, saying it didn't make sense that the shipment just happen to end up in the Philippines. "Niloloko ninyo kami dito... was there a bill of lading from the port of Indonesia... to Subic? Come on, Mr. Bulaon... do not bullshit us here," he said. "The shipper must be stupid to sell it to Subic for transshipment from Indonesia.  Why not Singapore?" he added. Tuazon, however, noted they did not allow the shipment to be discharged even though it had already entered Subic. "There's no notice that's why we held it... we did not allow them to declare [and] gave Customs legal grounds to seize it," he said. Biazon likewise confirmed that the SBMA cooperated with them regarding the seizure of the shipment. "Actually I would even say na 'yung huli [confiscation] na ito would be a joint effort by SBMA and BOC," he said. But the BOC commissioner said they will file a case against Amira and Metroeastern. "Maliwanag na kakasuhan namin 'yung consignee, sila yung identified na lumalabas na may-ari pati yung Amira siguro masasama yan... once we finalize our forfeiture proceedings," Biazon said. Enrile, during the hearing, recommended that the rice just be given to the poor.  Other senators suggested that it be given to victims of calamity. — LBG, GMA News